I have been doing some deep reading into Bitcoin, Ethereum and comparing PoW and PoS.
I will post a longer explanation soon but the 30 sec version is:
Proof of Work
- is properly incentivised and cannot be 'gamed' i.e. it you get more money to mine coins honestly thant to falsify old blocks
- is the fairest, most open and transparent way of converting a real commodity (energy) into a crypto-asset
- has been tested at scale and is proven
- is truly decentralised (as in the bitcoin implementation)
- is criticised for non-linear economies of scale, a misplace argument that really is about making your PoW algo ASIC-resistant (not the same subject)
Proof of Stake
- claims to not waste energy, but creating a stake in the ecosystem cost energy, economic activity and is probably as expensive as PoW
- claims to be 'democratic' but large players can falsify past blocks based the incentive to profit from cheating
- is not proven at scale
- is not tolerant of malicious actors on the network nor
- is proven to work without some central authority (why bother with a blockchain if you are going to be centralised eh?)
Good post...!
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